The Madras High Court has lifted the interim stay on the release of Demonte Colony 3, clearing the way for the Tamil horror film’s theatrical debut.

The court had put the release on hold on September 17 after A Vijaya Subramanian of White Nights Entertainments alleged a rights dispute. He claimed a January 2023 partnership deed with director Ajay Gnanamuthu covered the Demonte Colony franchise, and that the director took the third film to Passion Studios without his knowledge.

The stay was lifted at the end of September, though the makers are yet to announce a new release date. The film had earlier been slated for September 10 with an A certificate from the censor board.

The third instalment stars Arulnithi and Priya Bhavani Shankar and was shot in Chennai, Leh, Malta and Portugal over 80 days. The satellite and streaming rights have gone to Zee Tamil and ZEE5.

The film is marketed as ‘Demonte Colony III: The End is Too Far’. It is the third entry after Demonte Colony (2015) and Demonte Colony 2 (2024).